Regulator says US Supreme Court ruling overturns Iowa campaign finance law, urges action

US Supreme Court ruling reverses Iowa campaign law

DES MOINES, Iowa — A U.S. Supreme Court decision opening the door for businesses and unions to spend money influencing elections effectively overturns a state law banning such spending, and lawmakers should respond, the state’s top ethics regulator said Thursday.

“I want to bring it to their attention and we need to decide if they want to act on it,” said Charles Smithson, head of the Iowa Ethics and Campaign Disclosure Board.

He sent an e-mail to legislative leaders warning them of fallout from the decision.

The high court Thursday overturned a federal law banning both businesses and labor unions from spending on such efforts as buying time for television ads supporting a candidate. It left in place a ban on them giving money directly to candidates.

Iowa law has prohibited businesses and unions from giving money to candidates and from using their money to influence an election. The Supreme Court ruling effectively strikes down that ban, Smithson said.

“This is very confusing to legislative leaders and the public,” he said.

Legislative leaders labeled the ruling “outrageous” and vowed to act, though it was far from clear what they could do.

“It’s absolutely outrageous and we’ve got to find a way to deal with it,” said Senate Majority Leader Michael Gronstal, D-Council Bluffs. “I am on the side of ordinary working families when it comes to political campaigns. We are going to do our very best to deal with this issue.”

House Majority Leader Kevin McCarthy, D-Des Moines, said he spoke with Attorney General Tom Miller about the issue, and said key leaders are considering their options.

“We’re going to do everything in our power to try and prevent this corporate decision from influencing our politics,” said McCarthy. “If there are any options we have we will move extremely quickly to pass legislation.”

One option to be explored is an existing law that bans registered lobbyists from making campaign contributions while the Legislature is in session.

“It’s very troubling. It’s very concerning,” said McCarthy. “We’ll have some more information as soon as we get some legal analysis back.”

Republicans dismissed the worries.

“My biggest concern with campaign finance is disclosure,” said House Minority Leader Kraig Paulsen, R-Hiawatha. “I don’t know that this changes any of our disclosure laws.”

Smithson said the ruling means both unions and businesses can spend their treasuries in efforts to influence elections, but they would have to disclose that spending. Previously they formed political action committees for such spending, and had to raise the money independently.